December Monthly Options Expiration Day

Terry's Tips Stock Options Trading Blog

I noticed that the value of some of our portfolios was changing after the market for the underlying stock had closed. Clearly, the value of the options was changing after the 4:00 EST close of trading. I did a Google search to find a list of options that traded after hours, and came up pretty empty. But now I have found the list, and will share it with you just in case you want to play for an extra 15 minutes after the close of trading each day.

Terry

List of Options Which Trade After Hours (Until 4:15)

Since option values are derived from the price of the underlying stock or ETP (Exchange Traded Product), once the underlying stops trading, there should be no reason for options to continue trading. However, more and more . . .

Yesterday I sent you a note describing an interesting way to make some serious money with options, betting that the price of oil will either stabilize or move higher from today’s low levels. Thanks to subscriber Thomas, there is a better underlying out there. Just in case you were planning to place the trades, I thought you should check this one out first.

Terry

An Even Better Way to Play Oil With Options

This is a re-write of yesterday’s letter, except the underlying is USO (another ETF) rather than OIH. The chart for USO is remarkably similar to that of OIH:

There is a distinct advantage to USO, however. The options are far more liquid . . .

If you are anything like me, I have enjoyed filling up my car lately. It almost seems too good to be true. How long do you think gas prices will stay this low? I figure that the price is more likely to move higher from here than it is to move lower, but I could be wrong. It seems like a prudent bet would be that it won’t move much lower from here, and that the price of oil is more likely to stay the same or move higher over the next year. If either scenario (flat or up) is true, you can easily double your money using options. Today I will show you one way that might be accomplished.